IDT Reports Strong Q4 2025 Revenue and Record Adjusted EBITDA

IDT (IDT.US) announced its financial results for the fourth quarter and full fiscal year ended July 31, 2025, demonstrating significant growth. The company reported consolidated revenue of $316.6 million for Q4 2025, representing a 3% year-over-year increase. Non-GAAP EPS increased to $0.76 from $0.57 in the prior year quarter, and Adjusted EBITDA grew 33% to $33.4 million.

Key Business Segment Performance

IDT's key business segments showed robust performance during the fourth quarter. The NRS segment’s recurring revenue increased 22% to $32.6 million, with Adjusted EBITDA surging 32% to $9.3 million. The BOSS Money / Fintech segment saw its total revenue rise 21% to $38.2 million, driven by a 31% increase in BOSS Money digital revenue, and its Adjusted EBITDA soared 267% to $5.5 million.

Net2phone's subscription revenue grew 8% to $22.2 million, or 9% on a constant currency basis, with its Adjusted EBITDA increasing 42% to $3.5 million. Traditional Communications also contributed positively, with gross profit up 2% to $41.0 million and Adjusted EBITDA increasing 8% to $17.6 million.

Management Outlook and Strategic Focus

Management expressed confidence in continued growth, emphasizing the double-digit Adjusted EBITDA expansion across all operating segments for the full fiscal year 2025, resulting in a record $129 million consolidated Adjusted EBITDA. For fiscal year 2026, IDT expects to generate Adjusted EBITDA in the range of $141-$145 million under a revised non-GAAP definition that will exclude non-cash compensation expense.

The company plans to capitalize on market opportunities by investing in new growth initiatives, evaluating potential acquisitions, and returning cash to stockholders through buybacks and quarterly dividends. Strategic developments include NRS’s focus on Merchant Services and SaaS fee revenues, BOSS Money's digital channel expansion and WhatsApp integration, and net2phone's development and deployment of AI agentic offerings.

Operational Enhancements and Market Trends

NRS is actively addressing churn with AI-driven predictions, a new retention team, enhanced service levels, and features designed to improve retailers’ bottom lines. Partnerships with delivery providers like DoorDash are generating increased order volumes for early-adopting stores, while NRS Insights is developing agreements with leading coupon providers to offer digital coupons.

BOSS Money is adjusting its pricing models to capture accretive upside from the increasing digital send volumes, which grew over 40% in 4Q25 and FY 2025. Net2phone, recognized for its AI Agent, is continuing to develop its AI coaching agent, Coach, and custom capabilities for specific market verticals, with early releases planned for the medical and hospitality sectors.